Did it:
http://www.318ti.org/forum/showthrea...highlight=3.45 Summary, 1st gear is so low that it didn't make that big of a difference. Definitely no lugging at all.
My records show I drive like this for over a year before I actually did my manual swap. Didn't seem like that long, but it must have been no big deal as I left it there. I also don't remember having any major MPG improvements either, so that must have been a wash. Can't believe I never updated that thread.
Anyway, if you're doing it for MPG, I say don't bother.